Just over a third of the approximately 1800 financial advice providers in the country either have a full FAP licence or are in the process of getting one, according to the Financial Markets Authority (FMA).
The deadline to get an application in is September 30th, and no adviser who has not had a licence approved by next March will be allowed to do business.
“As at July 18, 663 FAP licences have been approved or are in progress,” the FMA said in a statement.
“That means 36% of providers are now operating under or have applied for their full licence. That percentage increases to 64% when taking into account those on the Financial Service Providers Register who have registered for the service but are yet to formally apply.”
The FMA added that the majority of banks and insurers reached the target date to submit their applications, indicating the industry was “committed to a smooth transition to full licensing”.
Many well established mortgage advisers were fully licensed months ago, saying it was just part of the job they needed to get done.
But smaller operations, especially one-man-bands, are dragging their feet. Anecdotal comment suggests many are using this as cue to leave the business, saying the FAP programme is the latest but probably not the last bureaucratic burden that will weigh down their business.
However the FMA has redoubled its efforts to reach these people, with roadshows and even phone-ins to provide assistance.